Every generation can improve themselves in countless ways thanks to the advice of those who came before them. Regarding financial understanding, men and women are open about letting the next generation know how to navigate those tricky waters! Recently, people converged in an online discussion to give sound financial advice aimed squarely at the next generation.
1. Manage Your Money via an App
Learning to be financially savvy can sometimes be overwhelming; fortunately, banking apps simplify the process. Familiarizing yourself with your bank's app can give you a rudimentary understanding of how your personal finances work. Having your financial information in the palm of your hand is an essential tool.
2. Take Care of Your Body
Health issues cost money to diagnose and treat, so your best bet to avoid unexpected hits to your emergency fund is to take care of your body. From exercising regularly to eating healthy, avoiding costly doctor visits can mean the difference between being financially secure and in serious debt.
3. Make Sacrifices
The road to being financially secure is littered with potholes: on a near-daily basis, you'll be enticed to make large purchases that could set you back months or even years of savings. Countless people advise the younger generation to keep their future in the back of their minds with every purchase they make. One financial setback can be costly.
4. Target Skilled Jobs
Have a plan: going to college and attaining a degree without a specific occupational goal is pointless. “There are too many people with bachelor's degrees flipping burgers out there,” expresses one woman. “Be someone with a bachelor's degree who makes extra bank by fixing pipes, wiring, roofs, and doing landscaping.”
5. Don't Limit Your Job Search to One Region
This particular advice is straightforward to grasp: go where the money is. Don't be afraid to move literally and figuratively outside your comfort zone! Making sound financial decisions begins and ends with choosing a lucrative job. Being unafraid to move to an unfamiliar area for work can severely limit your money-making potential.
6. Learn to Budget
I get it: nobody likes to budget. Nobody wants to sit down, figure out their endless expenses, and enter them into a dull spreadsheet. However, understanding the basics of a budget is like having a cheat code to achieve financial wellness! Budgets work because they allow anyone to grasp their financial situation easily.
7. Invest if You Can
Nobody will expect you to become a young Warren Buffett, but any extra money you come across should be invested, no matter how small the amount is! “If you can, invest some of your money in a long-term and relatively safe investment,” advises one expert. “The risk is low, and what you get is quite small, but basically, just forget about it, and you will get the result when you are an adult.”
8. Utilize College to Network
The advantages of higher education can't be understated. Not only is it the ideal place to educate yourself, but you should also utilize college to meet people who can benefit your future. “Use school as a place for networking, not just to study,” reveals one man. “Then, you'll know many people and train your social skills.”
9. It’s Okay To Make Mistakes
Don't beat yourself up because you made an impulse buy. Although certain purchases can have serious long-term ramifications, in most cases, buying the latest Call of Duty video game every year will not throw your livelihood off track. As with all mistakes, you must learn from them and know how to stop repeating them.
10. Understand Credit Cards
One of the biggest mistakes the younger generation can make is falling into credit card debt. Take it from the older generations: it's a hole that can be impossible to dig yourself out of! Only open a credit card if you can reliably pay off the balance each month; failure to do so will leave you susceptible to sky-high interest charges.
11. Don’t Overpay for a Car
You don't need a Lexus. You don't need a BMW. You don't need a Land Rover. In 2023, more Americans than ever before have car payments totaling over $1,000 per month. When your car payment approaches your housing payment, you know you've gotten into a bad financial situation. The advice is simple: don't lust after cars you can't afford.
12. Start Thinking in Terms of Hours, Not Dollars
If you struggle to save money and frequently make unwise purchases, it may be time to adjust your thinking! “One of the best pieces of advice I've heard for spending money is to compare it to how many hours of work it would take to make that amount of money,” confesses one woman. “If you make $20 per hour and something costs $100, is it really worth the five hours of work you spent to make that money? It's very solid advice that's helped me a lot.”
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Source: Reddit.
